Kirkland’s, Inc. (KIRK) Rating Lowered to Sell at Zacks Investment Research

Kirkland’s, Inc. (NASDAQ:KIRK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday.

According to Zacks, “Kirkland's, which has been reporting a loss for quite some time now, has lagged the industry year to date. The company has been grappling with high operating costs and soft traffic, which was also witnessed in third-quarter fiscal 2017. Kirkland’s third-quarter loss widened year over year and was worse than the consensus mark. Results were hurt by supply chain disruptions, impact from hurricanes, higher store labor and outbound freight costs. These factors, along with expectations of a higher tax rate also led to a tweaked earnings view. Nonetheless, the company continued with its solid sales trend, courtesy of contributions from new stores, focus on merchandise enhancements and a 40% surge in e-commerce sales. Solid conversions also helped Kirkland’s offset weak traffic, leading to comps growth. Notably, the company began the fourth quarter on a solid note, with its holiday season assortments and marketing efforts in place.”

Several other research analysts also recently commented on the stock. B. Riley set a $15.00 price target on shares of Kirkland’s and gave the company a “buy” rating in a report on Thursday, November 16th. Sidoti raised shares of Kirkland’s from a “neutral” rating to a “buy” rating and raised their price target for the company from $10.00 to $12.00 in a report on Tuesday, August 22nd. Finally, KeyCorp reissued a “buy” rating and issued a $14.00 price target on shares of Kirkland’s in a report on Friday, November 10th. One investment analyst has rated the stock with a sell rating, three have assigned a buy rating and one has given a strong buy rating to the stock. The company has a consensus rating of “Buy” and a consensus price target of $12.50.

Kirkland’s (NASDAQ:KIRK) opened at $12.21 on Wednesday. The company has a market cap of $195.36, a P/E ratio of 25.98 and a beta of 1.23. Kirkland’s has a fifty-two week low of $8.17 and a fifty-two week high of $17.41.

Kirkland’s (NASDAQ:KIRK) last released its quarterly earnings data on Tuesday, November 21st. The specialty retailer reported ($0.10) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.09) by ($0.01). The business had revenue of $144.98 million during the quarter, compared to the consensus estimate of $142.31 million. Kirkland’s had a return on equity of 5.93% and a net margin of 1.14%. The firm’s quarterly revenue was up 4.9% on a year-over-year basis. During the same period last year, the business posted ($0.05) earnings per share. equities analysts predict that Kirkland’s will post 0.55 EPS for the current year.

Kirkland’s announced that its board has initiated a share repurchase program on Tuesday, August 22nd that authorizes the company to buyback $10.00 million in shares. This buyback authorization authorizes the specialty retailer to purchase shares of its stock through open market purchases. Shares buyback programs are often a sign that the company’s board believes its stock is undervalued.

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A number of large investors have recently modified their holdings of the stock. Dimensional Fund Advisors LP raised its position in Kirkland’s by 9.6% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,317,969 shares of the specialty retailer’s stock worth $15,064,000 after purchasing an additional 115,385 shares during the period. Vanguard Group Inc. raised its position in Kirkland’s by 8.8% in the 1st quarter. Vanguard Group Inc. now owns 828,023 shares of the specialty retailer’s stock worth $10,269,000 after purchasing an additional 67,228 shares during the period. Renaissance Technologies LLC raised its position in Kirkland’s by 11.4% in the 1st quarter. Renaissance Technologies LLC now owns 615,700 shares of the specialty retailer’s stock worth $7,635,000 after purchasing an additional 62,900 shares during the period. Foundry Partners LLC raised its position in Kirkland’s by 5.3% in the 3rd quarter. Foundry Partners LLC now owns 562,470 shares of the specialty retailer’s stock worth $6,429,000 after purchasing an additional 28,450 shares during the period. Finally, Penn Capital Management Co. Inc. raised its position in Kirkland’s by 1.0% in the 2nd quarter. Penn Capital Management Co. Inc. now owns 392,821 shares of the specialty retailer’s stock worth $4,038,000 after purchasing an additional 3,992 shares during the period. Institutional investors own 83.35% of the company’s stock.

Kirkland’s Company Profile

Kirkland’s, Inc is a specialty retailer of home decor and gifts in the United States. The Company’s merchandise categories include wall decor, art, mirrors, lamps, decorative accessories, accent furniture, textiles, fragrance and accessories, frames, housewares, impulse and personal accessories, outdoor living and artificial floral products.

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